The Fateh "Conqueror" submarine weighs 600 metric tons, according to Iran's state-run Press TV, and is capable of carrying an array of state-of-the-art weaponry. Its potential arsenal includes torpedoes and naval mines, as well as cruise missiles "that could be launched from a submerged position."

The ceremony took place in the southern port of Bandar Lengeh. Press TV tweeted images of the submarine ahead of the event.

Since 1992, Iran has developed a strong homegrown defense industry, producing light and heavy weapons including tanks and submarines. Earlier this month, Iran tested a new cruise missile.

The move is likely to exacerbate tensions with the United States, after US President Donald Trump pulled out of a 2015 nuclear agreement with Iran and several other world powers last May. Trump said the deal was flawed because it did not include restrictions on Iran's development of ballistic missiles or its support for armed proxies in Iraq, Lebanon, Syria and Yemen.

Iran on Sunday accused the US of a "pathological obsession" after US Vice President Mike Pence said the country was seeking "another Holocaust” in an address to the Munich Security Conference a day earlier.